Confused UK retirees …

The Belgian tax authorities are emphasising that it has nothing to do with Brexit, but this year, they have suddenly decided to tax Belgian state pensions paid to British retirees living in the UK. The problem is the double tax treaty between Belgium and the United Kingdom and the transitional rule for older retirees. What is it all about? If you live in one country …

Taxes in Corona Times

Covid-19 has changed certain rules and habits. You cannot visit the tax office to get help to complete your tax return, that has to be done over the phone (see Help!?). You may have been forced to work from home and your employer could pay you a tax-free allowance of €126.94 for working at home, plus €20 (for the use of your own pc) and …

2021 Tax Return: Appeal the Tax Bill

How and where you do that is explained on page 2 of your tax bill. You have to send a letter to the address in the middle of the page within six months after you receive the tax bill. That means the letter must arrive with the tax authorities within six months plus three working days from the date the tax assessment was sent out. …

2021 Tax Return : The Tax Bill

tax bill

Now that you have filed your tax return, all that you can do is wait for the taxman to send you the tax assessment or tax bill. The “avertissement extrait de role”/”aanslagbiljet” is really the tax bill for your 2020 income. If you have not seen one before, you can click here to see one. If the tax bill is not sent before 30 June …

2021 Tax Return: Nowhere to Hide

For years, many people thought they could safely “forget” the income they had outside Belgium; the taxman would never find out. The EU Savings Directive was a rude wake-up call as the Belgian tax authorities started receiving information about overseas bank accounts and enquiring about overseas bank accounts. And when Belgian banks started reporting to the tax authorities abroad, they thought “Surely, Luxembourg and Switzerland …

2021 Tax Return: Stock Exchange Tax

Belgium has always charged a tax on stock exchange transactions, such as the purchase and sale of some financial instruments (bonds and stocks) on a secondary market, and the sale of mutual funds (UCITS), through a Belgium-based professional intermediary, a bank or broker. The tax is also due when you buy or sell through a foreign bank or on an online account. And you must …

2021 Tax Return: Box XIII – Trusts

You have to confirm whether you have set up a legal arrangement (a “construction juridique”) or whether you are the beneficiary of such a legal arrangement. This is a difficult word for a trust, a foundation, or a foreign company in which you accumulate income tax-free. Cayman tax If you have such a legal arrangement, you must also declare the interest and dividends that accumulated …

Capital Gains

As a matter of principle, Belgium doesn’t tax capital gains if they are made by way of “normal management of private wealth”. Private wealth is anything that you don’t use for your job or for professional purposes. And the normal management of your private wealth is what you do to keep your wealth growing safely, without speculating. Speculation would be e.g. borrowing to get leverage …

2021 Tax Return: Box XII – Paying your Taxes in Advance

If you have paid your tax in advance, e.g. because you don’t have an employer who deducts the tax from your salary, you report that under 1570/2570 in Box XII. Paying the tax in advance is highly recommended, in particular for self-employed. Not doing so results in a tax increase of 2.25% of the tax. If you don’t have to pay the tax in advance …